Once
again rest assured that our brightest days are still to come.
Congress has passed the first overhaul of the U.S. tax code in
more than 30 years. The Tax Cuts Act is a powerful symbol of what Republicans
can accomplish when they unite behind a positive governing agenda for the
country.
But this legislation isn’t about Republicans vs. Democrats.
Rather, it’s an early centerpiece of the vision President Trump laid out on the
campaign trail. Americans of all backgrounds want a government that’s more
accountable, more democratic, and less eager to line its pockets with cash from
taxpayers and small businesses.
Returning money from Washington to the people is the clearest
sign our leaders can give that they take this responsibility seriously.The U.S. tax code was an
overcomplicated mess, so we understand Americans want to know exactly what’s
different under the new law. It makes three important changes to our tax
system:
1. The Tax Cuts
Act means less money taken out of Americans’ paychecks. It provides
$5.5 trillion in tax cuts by nearly doubling the standard deduction, doubling
the child tax credit, protecting tax savings for higher education and
retirement, and lowering rates across the board. It also repeals Obamacare’s
individual mandate tax, 80 percent of which hit households earning less than
$50,000 a year in 2016.
2. The bill puts
American businesses on a level playing field with foreign competitors. America’s
corporate tax rate will go from being the highest in the developed world to
below the average for Organisation of Economic Co-operation and Development
(OECD) countries. A one-time tax on corporate earnings stashed overseas will
end the incentive for companies to keep their profits outside of the United
States.
3. The act will
eliminate dozens of special interest tax breaks and loopholes. The Tax
Cuts Act will raise $4 trillion in revenue to help offset tax cuts by closing
the door on dozens of corporate accounting tricks. The bill eliminates a
loophole used to deduct compensation for executives earning more than $1
million a year. Washington isn’t spared, either: Members of Congress will no
longer be able to deduct their living expenses.
Talk is cheap, of course—the proof will come when Americans
begin seeing more money in their paychecks as early as February.
In addition to
tax relief for working families, this bill is about restoring America’s
economic dominance. While excessive business taxes are unseen by many,
everyone feels the effects through higher prices and lower wages. By flattening
the tax rate for American companies across the board, all businesses—not just
the well-connected ones that pay for teams of lawyers and accountants—will be
able to invest once more in our country’s future.
“This is going to mean
companies are going to be coming back,” President Donald J. Trump said before
members of Congress on the White House’s South Lawn.“
You know, I campaigned on the fact that we’re not going to lose our companies anymore.”
With the U.S. stock market breaking record highs no fewer than 70 times in 2017, that project of American renewal is off to a great start.
You know, I campaigned on the fact that we’re not going to lose our companies anymore.”
With the U.S. stock market breaking record highs no fewer than 70 times in 2017, that project of American renewal is off to a great start.
